"Second, the US needs more export controls on chips to hamstring Chinese access to advanced compute so that they simply canâ(TM)t train on US model outputs. That could make conducting distillation attacks pointless, Anthropic suggested."
Distillation requires relatively little compute. This is like trying to prevent the builder of a cruise ship from obtaining the means of obtaining deck chairs to prevent them from competing with other shipyards. This isn't how reality works.
"We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the Administration to maintain American AI leadership"
"illicit distillation" is not a thing. In a way the crying is quite telling. If the statement is true and in fact "AI leadership" is based on distillation then Anthropic and everyone else is fucked.